D & O Licence Registration - Kerala

Updated: 2 days ago

An Introduction - D & O Licence / Trade Licence


D&O Trade License is a certificate issued by the local government like Panchayat, Municipality and Municipal Corporations. This certificate is a permission to do business in the local limits of concerned Local Self Government (LSGD). The full form of D & O is Dangerous and Offensive Trades. In Kerala, the Health department of Municipal Corporation/ Panchayat/ Municipality issue the D & O Trade Licence. This trade license is mandatory for every constitution of business in Kerala. The issue of D & O License in Kerala is controlled and regulated by " The Kerala Panchayat Raj Act, 1994 ". The trade license registration is applicable for all kind of business in India like Sole Proprietorship, Partnership Firms, Private Limited Company, Limited Liability Partnership, Societies etc.


Every commercial / non commercial establishment must obtain Trade License issued by the local governments. Along with Trade License, commercial establishments must obtain Shop and Establishment License & Labour Welfare Fund Registration issued by Labour Department before starting commercial operations or appointing employees in the Establishment. Commercial Establishments includes shops, office work, hotel, restaurant, boarding or eating house, cafe or any other refreshment house, a cinema theatre etc.



As part of "The Kerala Micro Small Medium Enterprises Facilitation Act, 2019, Kerala government exempt new entrepreneurs from register under D&O Trade License and Shop and Establishment License whose Investment is below 10 crore. These exemption is applicable for initial three years and apply for all license and clearances from the concerned authority within six month from the expiry of above 3 years.

To know more about K-SWIFT Program and Registration.


The Kerala Panchayat Raj (Issue of Licence to Industries, Factories, Trades, Entrepreneurship Activities and Other Services ) Rules/ 2018 now come into force to regulate the Issue of License." Issue of License to Dangerous and Offensive Trades and Factories Rules 1996 " has been substituted by the the words " Issue of License to Industries, Factories, Trade, Entrepreneurship Activities and Other Services Amendment Rules 2018 " by passing the ACT " The Kerala Investment Promotion and Facilitation (No. 2) Act 2018 ". 


The Owner / Occupier / Authorized Representative of every place or business used for the purposes specified in Schedule I (Trade, Commerce and Establishment) shall, within thirty days, submit to the Secretary, application for licence for the use of such place for such purpose.


If the applicant intends to start more than one trade he has to take the license for each additional trades.



Importance & Need for D & O Licence

  1. The Major objective of D & O License is to restrict the dangerous and offensive trades which is harmful the public.​

  2. The Village Panchayat may, by affixing notices in the notice board of the Offices of the Panchayat and in conspicuous places of every constituency in the Panchayat and by advertisement by way of pamphlets and loudspeakers,notify that no place in the Panchayat area shall be used for any purpose or purposes specified, in Schedule I without the licence issued by the Secretary and Officer authorized by him, and except in accordance with the conditions specified therein.

  3. If the licence is for running restaurants, eating houses, hotels, coffee houses tea shops or for barbershops, the licence issued by the Secretary and Officer authorized by him shall always contain and shall be deemed to contain a condition that admission therein shall be available for every member of the public.

  4. In Kerala Trade License Registration is compulsory to pay and file return of Professional Tax levied by the local self government.

  5. Now these days trade license issued by the local self government is mandatory for partnership firms and proprietorship firms to open a current account in the Trade Name. Trade License registration is the best method to start a business with a Trade Name other than Trademark Registration.

  6. Trade License is mandatory for apply shop and Establishment license issued by the Labour Department, and this license is important for ESI Registration and EPF Registration. All the labour license are some much related to the Trade License Registration. Various statutory bodies in India also accept Trade License as KYC for Trade Name; Import Export Code (IEC) issued by DGFT, GST Registration and CLRA Registration etc.



Is Trade License compulsory ?


  1. Is Trade license is required for Proprietorship Firm?

  2. Is Trade license is required for Private Limited Company?

  3. Is Trade License is required for LLP / Partnership Firms ?


Yes, all kind of business constitutions must obtain the prior permission from the local authority to do a business in that local limits. Now, trade license issued by the local authority is not mandatory for gst registration, but it a legal document for proprietorship firms to open a bank account in a Trade Name, other than proprietor personal name.



The Application of Trade License have two phases

  1. Application for Issue of New Trade License

  2. Renewal Existing Trade License


Detailed step by step process for apply Trade License in Kerala


Step 1 : The applicant has to submit the application along with supporting documents through Online or at the counter to Secretary or Officer authorized by him (FORM 1) . After receipt of the application and supporting documents the secretary shall issue a acknowledgment to the applicant. If any supporting document is missing with application, the Secretary or Officer authorized by him shall immediately inform the applicant and allow the applicant to submit the missing document at the earliest but not later than three days from the date of receipt of application.


Now online applications are done through Sanchaya (Revenue and Licence module) for Local Government Institutions. Even if an applicant file an online application, the applicant must submit the filed online application along with adequate documents offline to appropriate authority. ( Online facility is now available only for Municipalities and Municipal Corporation except Kochi Muncipal Corporation, also available for panchayats near future)


Step 2: Depending on the type of trade the applicant wants to start, the processing of the application starts with the Health Inspector inspecting the proposed trade premises and submitting his field verification details to the Secretary. Based on the remarks received from the Health inspector, Secretary takes a decision whether license is to be granted or not.

Step 3: Trade License Fees Payment ( Fees will be chargeable as per the schedule II, Find the below attachment)

Step 4 : Trade License will issue within 7 days of receipt of prescribed Fees.


The maximum processing time taken to issue trade license is 15 days. If Trade license is not issued within 15 days the applicant can raise a compliant against the concerned LSGD.


Note : The period of Trade License is for Five year (Earlier Three Years) and shall be renew automatically after the payment of Trade License fees. The Trade License fee must be pay before 30 days of expire of License. No need to file a renewal application for Trade License. In some cases the secretary may ask a Self Declaration Certificate and NOC from Premise owner.


As a part of promoting the trade and commerce in the state of Kerala, the state government simplify the process of Trade License application in Kerala. The Kerala Investment Promotion and Facilitation Ordinance 2017 (22 of 2017) makes the changes and amendment to Kerala Panchayat Raj (issue of License to Dangerous and Offensive Trade and Factories ) Rules 1996.


Documents Required - For Kerala Trade License


  • ​Building Owner's Consent Letter (Rs. 200 Stamp Paper, Notarized)

  • Latest Property Tax Receipt (Building Tax Receipt)

  • Affidavit of Applicant (Rs. 200 Stamp Paper)

  • Rent Agreement

  • Id Proof (Applicant & Building Owner)

  • MOA / AOA / Certificate of Incorporation / Partnership Deed

  • Consent Letter / Board Resolution for Authorized Signatory

Note : Now sanitary certificate issued by the health department is not required to file d & o license, earlier it is mandatory.

Additional Documents

In case of Industry / Workshop / Machinery/ Factory the applicant must obtain the NOC for installing the equipment before starting the trades.I


n case of / Hospital / Clinic/ Paramedical institution / Clinical Laboratories and other healthcare institutions, The following documents are required

  1. ​Report of District Medical Officer of Health

  2. NOC from Department of Town and Country Planning

  3. NOC from State Pollution Control Board

Period of License (Validity) / Mode of Renewal procedures

In Kerala the duration of d & o licence is for one financial year (April to March) and renew the license on yearly basis. Every d & o license holder must renew the license & pay the renewal fees before 30 days of expiry, i.e, in the month of February. The applicant need to file a fresh renewal application through online by Sanchaya portal. Any changes from previous application filed by the applicant must attach a Self Declaration Certificate and NOC from premise owner.


Maximum fees which may be fixed towards annual license fees



Downloads

Cochin Corporation - Trade License Application Form

D & O licence application form

Applicant Affidavit format (on Rs. 200 stamp paper)

Consent Letter from Building Owner Format (on Rs. 200 stamp paper)

Board Resolution Format (Applicable to Private / Public company)


Recent Notification against Trade / D & O License


Vol VI No 2326 Dated 31/10/2017

(SRO 674/2017)-Kerala Panchayat Raj (Issue of Licence to Dangerous and Offensive Trades and Factories ) Amendment Rules 2017


Vol VI No 2325 Dated 31/10/2017

Kerala Municipality (Registration of Private Hospitals and Private Paramedical Institutions) Amendment Rules 2017




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